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Our Locations

CISA Trust Company (South Dakota) LLC

  • 140 North Phillips Avenue,

  • Suite 305

  • Sioux Falls, South Dakota, 57104

  • 57104 United States of America

  • +1 605 951 9690

  • info@cisatrust.com
Membership: South Dakota Trust Association

South Dakota Trust Services

CISA Trust Company (South Dakota) LLC is dedicated exclusively to providing bespoke trust and company management services, and provides no custodial, deposit taking, or asset management services.

Licensing and Supervision

CISA is a State chartered trust company, holds a non-deposit public trust company Charter, and is subject to prudential supervision by the Division of Banking of South Dakota.

Affiliated Trust Companies

CISA has trust affiliates in Switzerland and the British Virgin Islands, and marketing affiliates in New York and Miami.

Wealth Planning

CISA South Dakota advises on the most appropriate types of trusts for succession, tax, and asset protection planning.

South Dakota Trust Laws

South Dakota trusts are codified in Title 55 of the South Dakota Codified Laws (SDCL), Fiduciaries and Trusts, and is considered one of the leading trust jurisdictions in the US. Features include “directed” trusts, dynasty trusts, asset protection, confidentiality, litigation privacy, decanting, Trust Advisors, Private Trust Companies (PTCs), Purpose Trusts, Special Purpose Entities, etc.

Trust Services

CISA provides a full range of trust services in South Dakota, including Grantor Trusts, GRATs, GRITs, and Intentionally Defective Grantor Trusts, Non-Grantor trusts, (Income Trusts, Discretionary Trusts), Qualified Personal Residence Trusts, Generation Skipping Trusts, Dynasty Trusts, Charitable Trusts, Purpose Trusts, Spendthrift Trusts, Asset Protection Trusts, Life Insurance Trusts, Foreign Trusts, etc. CISA also offers formation and administration services for Private Trust Companies (PTCs), and Purpose Trusts.

Company Management Services

CISA South Dakota offers incorporation, management and resident agent services for US LLCs and US corporations and partnerships, as well as foreign entities. In addition, CISA offers incorporation and administration services for Special Purpose Entities.

Accounting Services

CISA South Dakota provides book-keeping and accounting services for all entities under administration.

Taxation

South Dakota has no State income tax for corporations, trusts or individuals. South Dakota has an insurance premium tax of 0.08% for amounts over $200,000.

On the Federal level, US corporations are subject to tax at a 21% rate. US trusts are subject to Federal income tax. In general terms, for Grantor trusts, income is taxed to the Grantor at the Grantor’s marginal rate, up to a maximum of 37%. For non-Grantor trusts (simple or complex), tax on income is paid by the trust, except where current year income is distributed to a beneficiary. Trusts are taxed at higher compressed brackets than individual marginal rates, up to a maximum of 37%. “Foreign” trusts are not generally subject to Federal income tax, except “effectively connected income” (ECI) and “US source” income.

Double Tax Treaties (DTTs)

South Dakota Corporations and trusts benefit from the US broad network of Double Tax Treaties (DTTs).

International Investment Agreements (IIAs)

South Dakota corporations and trusts benefit from the US network of International Investment Agreements (IIAs) that provide for international arbitration in the event of expropriation.

OECD Convention on Mutual Assistance

The US is a signatory to the Convention on Mutual Administrative Assistance in Tax Matters (1988), which requires exchange of information “on request”, and authorizes spontaneous and automatic exchange.

Common Reporting Standard (CRS)

The United States has not signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of account information or committed to join CRS.

FATCA

The United States exchanges information with partner jurisdictions under the Foreign Account Tax Compliance Act (FATCA), and has FATCA Intergovernmental Agreements (IGAs) with many jurisdictions for exchange of information.

CISA Trust Company (South Dakota) LLC is registered with the IRS as a Sponsoring Financial Institution (FI).

Entity Classification Services

CISA South Dakota provides entity classification support under FATCA and CRS, including completion of W-8BEN-Es and CRS self certification forms.

Trust Laws of South Dakota

Constitution and Legal System

The US is a Federal Republic composed of 50 states, a Federal District, and territories and possessions, managed by a Federal government, with certain powers reserved to the states.

Applicable Trust Laws

South Dakota trust laws are set-forth in Fiduciaries and Trusts, South Dakota Codified Laws.

Trust Period

Trusts may be of unlimited duration. South Dakota abolished the rule against perpetuities.

Reserved Powers

South Dakota authorizes broad powers in favor of the settlor for certain types of trusts.

Disclosure of Information to Beneficiaries

South Dakota authorizes the restriction of the disclosure of information to beneficiaries.

Private Trust Companies (PTCs)

PTCs are authorized and require a trust license although the regime is more streamlined than for public trust companies.

Purpose Trusts

Purpose trusts are authorized, which have purposes as objects. Hybrid Purpose trusts are also authorized, which have purpsoses as well as beneficiaries.

Firewall Provisions

The firewall legislation requires South Dakota law to be applied to all matters concerning the South Dakota law trusts, and shields trust assets from foreign law claims arising from a personal relationship (matrimonial or community property rights) with the settlor and claims arising from heirship. Foreign judgements inconsistent with South Dakota policy will not be enforced.

Asset Protection Legislation

Creditors must show intent to defraud by “clear and convincing evidence” and bring an action within 2 years. Claims related to forced heirship are excluded.

Licensing and Supervision

State Chartered trust companies are subject to licensing and prudential supervision by the South Dakota Division of Banking.

Asset Protection Trusts (APTs)

South Dakota adopted asset protection laws in 2005, are set-out in a separate statutory provision, Qualified Dispositions in Trust, and are amongst the strongest in the US.

Asset Protection Requirements

In order to fall within the Asset Protection Trust (APT) statute, the trust must have a qualifying South Dakota trustee, the trust must have a South Dakota governing law clause, the trust must be irrevocable, and, the trust must have a spendthrift clause

South Dakota Trustee

Under the APT statute, the trustee must be a Qualified Person, such as an individual resident in South Dakota or a trust company licensed under South Dakota or Federal law with its principal place of business in South Dakota. The settlor may not be a trustee.

South Dakota Governing Law

The trust instrument must incorporate the laws of South Dakota to govern the validity, construction, and administration of the trust.

Trust Instrument Irrevocability

Under the APT statute, the trust instrument must be irrevocable, and will not be deemed revocable because of certain specifically enumerated retained interests or powers.

ATP Spendthrift Clause

The APT statute requires an express spendthrift provision prohibiting the settlor or beneficiary from alienating interests in the trust, voluntarily or involuntarily.

Creditor Claims - Fraudulent Transfer

A creditor may only attach trust property or set-aside the funding of the trust if the transfer was made with the intent to defraud that specific creditor, which must be proven by “clear and convincing” evidence. For pre-existing creditors, the claim must be brought within the later of 2 years after the transfer or 6 months after the transfer is or reasonably could have been discovered. For creditors whose claims arise after the transfer into trust, the claim must be brought within 2 years after the transfer.

Exception Creditors

Certain classes of creditors, known as “exception creditors” with pre-existing claims prior to the date of transfer (child support, alimony, division of marital property, etc.), may reach assets held in trusts created under the APT statute.

Avoidance of Qualified Disposition

Where a claim against a Qualified Disposition is successful, the disposition may be avoided only to the extent of the debt.

Public Policy

The asset protection statute contains a public policy statement that provides that the substantive provisions of the asset protection statute are so inseparably interwoven with substantive rights that a deprivation of legal rights would result if another jurisdiction’s laws to the contrary are applied.

Foreign Judgements

South Dakota courts have exclusive jurisdiction over actions bought against dispositions to trusts governed under the asset protection statute. Foreign forced heirship claims and claims for legitime under foreign law may not be asserted against a South Dakota APT. Foreign judgements are not enforceable in South Dakota where they conflict with South Dakota public policy.

South Dakota Trust Services

CISA Trust Company (South Dakota) LLC is dedicated exclusively to providing bespoke trust and company management services, and provides no custodial, deposit taking, or asset management services.

Licensing and Supervision

CISA is a State chartered trust company, holds a non-deposit public trust company Charter, and is subject to prudential supervision by the Division of Banking of South Dakota.

Affiliated Trust Companies

CISA has trust affiliates in Switzerland and the British Virgin Islands, and marketing affiliates in New York and Miami.

Wealth Planning

CISA South Dakota advises on the most appropriate types of trusts for succession, tax, and asset protection planning.

South Dakota Trust Laws

South Dakota trusts are codified in Title 55 of the South Dakota Codified Laws (SDCL), Fiduciaries and Trusts, and is considered one of the leading trust jurisdictions in the US. Features include “directed” trusts, dynasty trusts, asset protection, confidentiality, litigation privacy, decanting, Trust Advisors, Private Trust Companies (PTCs), Purpose Trusts, Special Purpose Entities, etc.

Trust Services

CISA provides a full range of trust services in South Dakota, including Grantor Trusts, GRATs, GRITs, and Intentionally Defective Grantor Trusts, Non-Grantor trusts, (Income Trusts, Discretionary Trusts), Qualified Personal Residence Trusts, Generation Skipping Trusts, Dynasty Trusts, Charitable Trusts, Purpose Trusts, Spendthrift Trusts, Asset Protection Trusts, Life Insurance Trusts, Foreign Trusts, etc. CISA also offers formation and administration services for Private Trust Companies (PTCs), and Purpose Trusts.

Company Management Services

CISA South Dakota offers incorporation, management and resident agent services for US LLCs and US corporations and partnerships, as well as foreign entities. In addition, CISA offers incorporation and administration services for Special Purpose Entities.

Accounting Services

CISA South Dakota provides book-keeping and accounting services for all entities under administration.

Taxation

South Dakota has no State income tax for corporations, trusts or individuals. South Dakota has an insurance premium tax of 0.08% for amounts over $200,000.

On the Federal level, US corporations are subject to tax at a 21% rate. US trusts are subject to Federal income tax. In general terms, for Grantor trusts, income is taxed to the Grantor at the Grantor’s marginal rate, up to a maximum of 37%. For non-Grantor trusts (simple or complex), tax on income is paid by the trust, except where current year income is distributed to a beneficiary. Trusts are taxed at higher compressed brackets than individual marginal rates, up to a maximum of 37%. “Foreign” trusts are not generally subject to Federal income tax, except “effectively connected income” (ECI) and “US source” income.

Double Tax Treaties (DTTs)

South Dakota Corporations and trusts benefit from the US broad network of Double Tax Treaties (DTTs).

International Investment Agreements (IIAs)

South Dakota corporations and trusts benefit from the US network of International Investment Agreements (IIAs) that provide for international arbitration in the event of expropriation.

OECD Convention on Mutual Assistance

The US is a signatory to the Convention on Mutual Administrative Assistance in Tax Matters (1988), which requires exchange of information “on request”, and authorizes spontaneous and automatic exchange.

Common Reporting Standard (CRS)

The United States has not signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of account information or committed to join CRS.

FATCA

The United States exchanges information with partner jurisdictions under the Foreign Account Tax Compliance Act (FATCA), and has FATCA Intergovernmental Agreements (IGAs) with many jurisdictions for exchange of information.

CISA Trust Company (South Dakota) LLC is registered with the IRS as a Sponsoring Financial Institution (FI).

Entity Classification Services

CISA South Dakota provides entity classification support under FATCA and CRS, including completion of W-8BEN-Es and CRS self certification forms.

Trust Laws of South Dakota

Constitution and Legal System

The US is a Federal Republic composed of 50 states, a Federal District, and territories and possessions, managed by a Federal government, with certain powers reserved to the states.

Applicable Trust Laws

South Dakota trust laws are set-forth in Fiduciaries and Trusts, South Dakota Codified Laws.

Trust Period

Trusts may be of unlimited duration. South Dakota abolished the rule against perpetuities.

Reserved Powers

South Dakota authorizes broad powers in favor of the settlor for certain types of trusts.

Disclosure of Information to Beneficiaries

South Dakota authorizes the restriction of the disclosure of information to beneficiaries.

Private Trust Companies (PTCs)

PTCs are authorized and require a trust license although the regime is more streamlined than for public trust companies.

Purpose Trusts

Purpose trusts are authorized, which have purposes as objects. Hybrid Purpose trusts are also authorized, which have purpsoses as well as beneficiaries.

Firewall Provisions

The firewall legislation requires South Dakota law to be applied to all matters concerning the South Dakota law trusts, and shields trust assets from foreign law claims arising from a personal relationship (matrimonial or community property rights) with the settlor and claims arising from heirship. Foreign judgements inconsistent with South Dakota policy will not be enforced.

Asset Protection Legislation

Creditors must show intent to defraud by “clear and convincing evidence” and bring an action within 2 years. Claims related to forced heirship are excluded.

Licensing and Supervision

State Chartered trust companies are subject to licensing and prudential supervision by the South Dakota Division of Banking.

Asset Protection Trusts (APTs)

South Dakota adopted asset protection laws in 2005, are set-out in a separate statutory provision, Qualified Dispositions in Trust, and are amongst the strongest in the US.

Asset Protection Requirements

In order to fall within the Asset Protection Trust (APT) statute, the trust must have a qualifying South Dakota trustee, the trust must have a South Dakota governing law clause, the trust must be irrevocable, and, the trust must have a spendthrift clause

South Dakota Trustee

Under the APT statute, the trustee must be a Qualified Person, such as an individual resident in South Dakota or a trust company licensed under South Dakota or Federal law with its principal place of business in South Dakota. The settlor may not be a trustee.

South Dakota Governing Law

The trust instrument must incorporate the laws of South Dakota to govern the validity, construction, and administration of the trust.

Trust Instrument Irrevocability

Under the APT statute, the trust instrument must be irrevocable, and will not be deemed revocable because of certain specifically enumerated retained interests or powers.

ATP Spendthrift Clause

The APT statute requires an express spendthrift provision prohibiting the settlor or beneficiary from alienating interests in the trust, voluntarily or involuntarily.

Creditor Claims - Fraudulent Transfer

A creditor may only attach trust property or set-aside the funding of the trust if the transfer was made with the intent to defraud that specific creditor, which must be proven by “clear and convincing” evidence. For pre-existing creditors, the claim must be brought within the later of 2 years after the transfer or 6 months after the transfer is or reasonably could have been discovered. For creditors whose claims arise after the transfer into trust, the claim must be brought within 2 years after the transfer.

Exception Creditors

Certain classes of creditors, known as “exception creditors” with pre-existing claims prior to the date of transfer (child support, alimony, division of marital property, etc.), may reach assets held in trusts created under the APT statute.

Avoidance of Qualified Disposition

Where a claim against a Qualified Disposition is successful, the disposition may be avoided only to the extent of the debt.

Public Policy

The asset protection statute contains a public policy statement that provides that the substantive provisions of the asset protection statute are so inseparably interwoven with substantive rights that a deprivation of legal rights would result if another jurisdiction’s laws to the contrary are applied.

Foreign Judgements

South Dakota courts have exclusive jurisdiction over actions bought against dispositions to trusts governed under the asset protection statute. Foreign forced heirship claims and claims for legitime under foreign law may not be asserted against a South Dakota APT. Foreign judgements are not enforceable in South Dakota where they conflict with South Dakota public policy.